This summary was created by AI, based on 3 opinions in the last 12 months.
Real return bonds, as represented by ZRR-T, are complex and often misunderstood by average investors. They provide inflation protection by tracking both the inflation and interest rate components, making them sensitive to changes in inflation. However, they can underperform during periods of low inflation and carry significant interest rate risk. The dividend has been falling, and the real return rate is highly variable, making ZRR-T a risky and messy security, which has been a poor performer in the bond market over the past three years.
Real return bonds are often misunderstood. They offer inflation protection, because they offer both an inflation and interest rate component (tracking both). So, if inflation ticks higher, these go higher. However, they underperform during low inflation. There's much talk of Trump's tariffs being inflationary, but part of his plank is deflationary. If you predict the former, you want some of ZRR.
Real return bonds are challenging to the average investor. The distribution of these is low, plus the inflation rate. This asset class sometime anticipates inflation and prices it in, and if not, there's big downside risk. Take advantage if it underestimates inflation. Is also serious interest rate risk.
Designed to protect from the ravages of inflation. The real return rate itself is highly variable, now they're under 2%, and they were negative a couple of years ago. Long duration, low coupon, nominal yields, risky. A messy security. Worst performers in the bond market last 3 years, by far.
It's been a tricky year, but part of your bond portfolio that you really want in there. Longer term, these ones give you a coupon rate along with whatever the CPI is. Accounting is a bit funny, so owning them through an ETF and in a registered plan makes sense. Tax calculation tricky outside a registered plan.
Adds protection during inflationary shocks. Nice complement to your bond portfolio, just an allocated piece of it.
If you want inflation protection and bonds. They take the CPI and add a spread. It's about inflation expectations. So if they're robust, they're already reflected in the bond price, then you won't see a big pop in the ETF price. Conversely, if they're underpriced, this ETF can perform. Real return bonds have struggled. Own this in a registered account to avoid tax headaches. You should own real return as well as nominal bonds. But don't go all-in in real return bonds.
BMO REAL RETURN BOND INDEX ETF is a Canadian stock, trading under the symbol ZRR-T on the Toronto Stock Exchange (ZRR-CT). It is usually referred to as TSX:ZRR or ZRR-T
In the last year, 3 stock analysts published opinions about ZRR-T. 1 analyst recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO REAL RETURN BOND INDEX ETF.
BMO REAL RETURN BOND INDEX ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO REAL RETURN BOND INDEX ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered BMO REAL RETURN BOND INDEX ETF In the last year. It is a trending stock that is worth watching.
On 2024-12-10, BMO REAL RETURN BOND INDEX ETF (ZRR-T) stock closed at a price of $14.62.